Nature Gnome Company has experienced rapid growth in its first few months of operations and has had a significant increase in customers renting canoes and purchasing T-shirts. Many of these customers are asking for credit terms. Ashley and Zion Wilson, stockholders and company managers, have decided it is time to review their business transactions and update some of their business practices. Their first step is to make decisions about handling accounts receivable. So far, year to date credit sales have been $23,000. A review of outstanding receivables resulted in the following aging schedule:

\begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multirow{3}{*}{TheNatureGroupCustomerName} & \multicolumn{8}{|c|}{ Age of Accounts as of June 30, 2025} \\ \hline & \multicolumn{2}{|c|}{\begin{tabular}{c} 130 \\ Days \end{tabular}} & \multirow[t]{2}{*}{\begin{tabular}{l} 3160 \\ Days \\ \end{tabular}} & \multirow[t]{2}{*}{\begin{tabular}{l} 6190 \\ Days \\ \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} Over 90 \\ Days \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} Total \\ Balance \\ \end{tabular}} \\ \hline & $ & 800 & & & & & $ & 800 \\ \hline Tee Totaler & & 600s & 100 & & & & & 700 \\ \hline Little Cub Daycare & & & & & \$ & 900 & & 900 \\ \hline Pavilion Pond & & 1,100 & & & & & & 1,100 \\ \hline Eagle Center & & & & 400 & & & & 400 \\ \hline South Bay Club & & 1,200 & & & & & & 1,200 \\ \hline Oak Shirts & & 600 & 1,000 & & & & & 1,600 \\ \hline Zane's Marina & & 100 & 100 & 100 & & & & 300 \\ \hline Total & $ & 4,400 & $1,200 & 500 & S & 900 & $ & 7,000 \\ \hline \end{tabular} Requirement 1. The company wants to use the allowance method to estimate bad debts. Assume a zero beginning balance for Allowance for Bad Debts. Method Estimated Bad Debts a. Percent-of-sales Method Estimated Bad Debts b. Percent-of-receivables intermediary computations and your final answer to the nearest dollar.) Method Estimated Bad Debts c. Aging-of-receivables \begin{tabular}{|c|c|c|c|} \hline Date & Accounts and Explanation & Debit & Credit \\ \hline \multicolumn{4}{|l|}{ Jun. 30} \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Debts. along with a "Bal." reference. (If an account has a zero balance, select the "Bal." reference and enter "0" on the appropriate side of the T-account.) Balance Sheet (Partial): Current Assets: \begin{tabular}{|l|l|} \hline & \\ & \\ \end{tabular}